Connect with us

Business

5 Steps That Allow You To Handle A Financial Crisis

5 Steps That Allow You To Handle A Financial Crisis

Even with careful financial planning, shocks can happen. Often financial crises are unexpected and out of our control, so it’s important to have a safety net to fall back on. However, research suggests that most people don’t feel confident in their ability to overcome a financial crisis.

Whether it’s unexpected property maintenance or redundancy, it’s essential that you feel confident in your financial situation. Research from Aegon indicates this isn’t the case for millions of Brits though. It found just three in ten men and two in ten women are confident they could financially handle a major unexpected expense. Money worries emphasised this lack of confidence too. 76% of women and 72% of men admitted they worry about money.

If that sounds familiar, here are five steps you can take.

1. Keep track of your spending

It’s easy to lose track of where our money is going. But it’s a sure-fire way to miss opportunities that could save you money.

Keeping tabs on a household budget can highlight where direct debits, such as utility bills or phone contracts, have crept up. A regular review will help you find the best deals and reduce essential living costs. It can also highlight where discretionary spending is adding up. Small expenses often go unnoticed when you look at the bigger picture, but they can have an impact. If you’re worried about money because you feel you’re not saving enough, for instance, cutting back here can help.

2. Reduce high-interest debt

If you have existing high-interest debt, such as credit cards or loans, you should prioritise repaying these.

Interest rates on savings are at a historic low. As a result, money in your savings accounts is likely to be offering significantly less interest than the amount you’re paying to service the debt. Reducing debt first can mean your outgoings are eventually reduced, allowing you to divert more to savings in the future. 

Not only does it make financial sense to pay off debt, but it can be a weight off your mind. People often find their financial wellbeing and their confidence improves when they are debt-free.

3. Build up a rainy-day fund

Having a financial safety net to fall back on can deliver more confidence too. It’s recommended that you keep three to six months’ expenses in an easy access savings account. This gives you a financial buffer should something happen.

It can seem like a large target if you’re starting from scratch. But you should make it part of your budget, transferring a set amount each month. As it gradually grows, you’ll hopefully start to feel more confident in your financial security.

4. Consider your long-term financial plan

Often when we worry about money, it’s the short term we focus on. However, looking ahead to the medium and long term is also important and can be a source of anxiety. Once you feel more confident in your current finances, turning your attention to goals further down the line is the next step.

This may include adding more to your pension, building up an investment portfolio or creating a nest egg for children or grandchildren. Knowing you’ve taken action to meet long-term aspirations can provide a confidence boost and help you feel more in control of your finances.

5. Seek financial advice

The research suggests employees would like additional financial support. 69% of women and 65% of men would find face-to-face financial advice useful, as it allows them to address specific concerns. Even if your workplace doesn’t offer these types of benefits, it is possible to get the type of support you could benefit from.

Some services can offer guidance on a range of financial wellbeing issues, from debt management to your options at retirement. Seeking a financial adviser Leeds can also help you create a holistic financial plan that addresses your concerns, goals and long-term ambitions. It’s a process that can give you confidence in your ability to weather the unexpected, including financial shocks. To discuss your needs, please get in touch.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only. 

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Posts

Find Low Competition Long Tail Keywords Find Low Competition Long Tail Keywords
Business13 hours ago

How To Find Low Competition Long Tail Keywords Using Free Tools

Keywords are the most fundamental and highest ROI activity when it comes to SEM and SEO.  Having the right keywords,...

Top Tips For Healthy Family Meals On A Budget Top Tips For Healthy Family Meals On A Budget
General1 week ago

Top Tips For Healthy Family Meals On A Budget

A healthy diet is not very difficult to follow since there is a lot of information available on the Internet...

Tips For Your Morning Skincare Routine Tips For Your Morning Skincare Routine
Lifestyle2 weeks ago

Tips For Your Morning Skincare Routine

Keeping your skin healthy can come down to numerous things. A healthy diet will be a good start in keeping...

How to Make SEO Work For You and Your Business How to Make SEO Work For You and Your Business
Business3 weeks ago

How to Make SEO Work For You and Your Business

The world of search engine optimization has changed a lot, but certain fundamental principles like focusing on target keywords to...

How to Increase Your Vegetable Garden Yield This Year How to Increase Your Vegetable Garden Yield This Year
Home Improvement4 weeks ago

How to Increase Your Vegetable Garden Yield This Year

If you are going thru the effort of planning, planting, caring, and growing your plants, you naturally want to get...

Why Families Benefit From A Family Dentist When Dealing With Oral Health Issues Why Families Benefit From A Family Dentist When Dealing With Oral Health Issues
General1 month ago

Why Families Benefit From A Family Dentist When Dealing With Oral Health Issues

Oral Health issues can be a source of conflict and stress in families, especially in families with young children. Not...

What Type Of SEO Is Effective? What Type Of SEO Is Effective?
Tech1 month ago

What Type Of SEO Is Effective?

Every business knows that it takes a huge amount of time and money to maintain a website. However, no one...

4 Reasons to Replace Your Car's Engine With Performance Parts 4 Reasons to Replace Your Car's Engine With Performance Parts
Autos2 months ago

4 Reasons to Replace Your Car’s Engine With Performance Parts

Performance parts are the best kind of upgrades you can make to a car. Performance cars have a higher price...

Maximum Power: Update Your Old House For Modern Electrical Needs Maximum Power: Update Your Old House For Modern Electrical Needs
Home Improvement2 months ago

Maximum Power: Update Your Old House For Modern Electrical Needs

An outdated electrical system can wreak havoc on your energy bills and greatly increase your risk of structural damage. If...

Key Techniques To Learn On A First Aid Course Key Techniques To Learn On A First Aid Course
Health2 months ago

Key Techniques To Learn On A First Aid Course

Introduction First aid training is an incredible qualification that can enable one to offer life saving assistance in an emergency....

Best Tips For Managing Your Building and Construction Projects Best Tips For Managing Your Building and Construction Projects
General2 months ago

Best Tips For Managing Your Building and Construction Projects

Building and construction projects consist of many tasks, from job-site duties to office paperwork. Juggling it all can oftentimes be...

How To Choose The Best Locksmith For The Job How To Choose The Best Locksmith For The Job
Home Improvement2 months ago

How To Choose The Best Locksmith For The Job

The existence of a locksmith is very crucial for society because they help out countless people on a daily basis....

5 Modern Conservatory Ideas To Create A Serene Escape 5 Modern Conservatory Ideas To Create A Serene Escape
General3 months ago

5 Modern Conservatory Ideas To Create A Serene Escape

Having a serene and relaxing conservatory is the dream, especially in the summer months. Creating an extension of your home...

4 Different Types Of Lifting Equipment For A Construction Site 4 Different Types Of Lifting Equipment For A Construction Site
Business3 months ago

4 Different Types Of Lifting Equipment For A Construction Site

One of the biggest challenges on a construction site is the problem of lifting heavy materials and tools to a...

5 Tips That Can Help Your Business Flourish 5 Tips That Can Help Your Business Flourish
Business3 months ago

5 Tips That Can Help Your Business Flourish

Many, both small and big, businesses were affected by the outbreak of the novel coronavirus, no one was spared. Overnight,...

Categories

Archives

Trending